Question 23

Charles Henri is considering investing $60,000 in a project this is expected to provide him with cash inflows of $15,000 in each of the first three years and $20,000 for the following year. At a discount rate of 7 percent this investment has a net present value of ____, but at the relevant discount rate of 3 percent the projects net present value is ____.

Group of answer choices

$5,000; $198.91

$5,000; $289.19

$5,000; $378.27

$10,000; $289.19

$10,000; $423.15

Question 24

The Flour Baker is considering a project with the following cash flows. Should this project be accepted based on its internal rate of return if the required return is 5 percent?

Year	Cash Flows
0	-$200,000
1	40,000
2	50,000
3	60,000
4	70,000

Group of answer choices

Yes, because the projects IRR is higher than the required rate

Yes, because the projects IRR is lower than the required rate

No, because the projects IRR is higher than the required rate

No, because the projects IRR is lower than the required rate

You are indifferent